Poland Czech Republic

www.newworldresources.eu Central Europe´s leading hard coal and coke producer New World Resources N.V. (“NWR” or the “Company”) produces quality in the region and its major customers include ArcelorMittal Steel, U.S. Steel, coking and thermal coal for the steel and energy sectors in Central Europe voestalpine, Moravia Steel, ČEZ, Verbund and Dalkia. through its subsidiary OKD, a.s. (“OKD”), the largest hard coal mining Headquartered in the Netherlands, NWR employs 18,553 people2 led company in the Czech Republic. NWR’s coke subsidiary, OKK Koksovny, a.s. by a world-class management team and the Board of Directors with global (“OKK”) is Europe’s biggest producer of foundry coke. and regional experience. At present NWR mines in the Czech Republic and has two development NWR has been listed on the London, Prague, and Warsaw stock exchanges projects in Poland, which form part of its regional growth strategy. since May 2008. NWR was the largest Initial Public Offering on the London The Company has 396 million tonnes of reserves1 and is strategically Stock Exchange and the only Initial Public Offering on the Prague Stock located within Central Europe. NWR supplies to a blue chip customer base Exchange in 20083. 1 As at 1 January 2011 2FY 2010 average; including contractors 3Source: Dealogic OUR BUSINESS Active mine Four active coal mines run by OKD and one coking plant producing Coking plant blast-furnace and foundry coke run by OKK. Development project In 2010 NWR produced 11.4 million tonnes of coal – 5.3 million tonnes of coking coal and 5.5 million tonnes of thermal coal were sold Upper Silesian coal basin Poland externally. In 2010 NWR produced 1 million tonnes of coke and sold 1.1 million tonnes. Our Polish subsidiary, NWR KARBONIA Sp. z o.o. (“NWR Karbonia”) oversees our two development projects in southern Poland, Dębieńsko and Morcinek. Strategically located mines and quality coal have made NWR a leading Czech Republic and trusted supplier. One of the Czech Republic’s largest industrial groups by assets and revenues and one of the largest private sector employers in the country. TOTAL COAL SALES VOLUMES POLISH DEVELOPMENT PROJECTS million tonnes Dębieńsko – In June 2008 NWR Karbonia was granted a 50-year licence 14 to mine in Dębieńsko, with 190 million tonnes of coking coal reserves. 12 11.4 – Detailed feasibility study underway 10.7 10.1 – Land and infrastructure acquisitions 10 – Physical start aimed for mid 2011 5.1 8 5.45 – Dedicated CAPEX of EUR 50 mln in 2011 4.9 6 Morcinek – Mining rights in the area are currently held by the Polish Thermal mining company JSW, with whom NWR signed a Letter of Intent in 4 October 2007 to jointly develop coal mining operations using OKD’s 6.3 5.25 2 5.2 existing facilities. In 2009 a cross border mining treaty was signed and Coking ratified by the Czech and Polish governments. 0 2008 2009 2010 CUSTOMERS BY SALES VOLUMES KEY FINANCIALS Coking coal customers Thermal coal customers Coke customers EUR million 2008 2009 2010 ArcelorMittal 33% voestalpine 18% Novscom 21% Verbund 13% voestalpine 23% KSK Handels 15% US Steel 26% Other 23% Dalkia 18% Other 35% Moravia Steel 23% Other 39% ČEZ 13% Revenue 1,815 1,117 1,590 EBITDA 684 179 464 EBITDA Margin 38% 16% 29% Net Income 352 (62) 233 Year ended 31 December 2010 Year ended 31 December 2010 Year ended 31 December 2010 Building on regional leadership position POP 2010 – completed to capitalise on economic and industrial trends In 2007 NWR took the strategic decision to improve the efficiency and profitability of NWR. Concluded at the end of 2009, the Production Optimi- Cost control and cash management sation Programme or POP 2010 was one of the largest projects of its kind Maintain high level of responsiveness to customer specifications in Europe. Over a period of two years 10 new longwall sets were installed, which are now fully operational and delivering good results in terms of Operational efficiencies productivity and efficiency. Importantly, the equipment is also contribut- Timely deliveries ing towards a safer working environment. Enhance profitability by investing in equipment and technology Enhance safety POP 2010: Productivity increases continue Focus on core business of coal mining and coke production Tonnes per LW & day, data for 2010 Build the reserve base from existing mines 3,800 POP Selectively pursue growth opportunities in the region equipment 2,000 Powerful landlocked market position 1,700 1,600 Old 800 Gdansk 650 equipment Rotterdam 631 km +129% +23% +19% 1,177 km Russia High seams Mid seams Low seams USA 5,160 km 8,500 km Committed to improving safety in our mines Ostrava MINING LOST TIME INJURY COKING LOST TIME The Lost Time Injury Fre- FREQUENCY RATE INJURY FREQUENCY RATE quency Rate (‘LTIFR’)4 is a clear international measure of the 23.48 6.44 general safety procedures. In 2009 we delivered the best Australia 14,220 km results in the history of OKD – and over the last six years NWR benefits significantly from the landlocked location of the production LTIFR has come down by 61%. facilities of its customers in the Czech Republic and Central Europe, We will continue to focus on and the proximity of its reserves and facilities to those customers. The driving up our health and 9.13 2.55 limited reach of navigable waterways near many industrialised areas safety standards and expect provides a competitive cost advantage to local coal producers, such as to reduce LTIFR by 50% by NWR. Additionally, importing coal from outside the region is generally 2015. Additionally, our coking more expensive than using locally sourced coal. Higher transportation plant operations noted a 60% costs associated with such overseas coal provides NWR with a further decline in LTIFR over the last competitive cost advantage in servicing its customers’ needs. 2005 2010 2006 2010 five years. History Rothschild Ownership Nationalisation Privatisation Asset Consolidation Global Offering 1782–1946 1946–1994 1994–2004 2004–2007 2007–2008 ■ Coal and steel conglomerate ■ Nationalisation ■ Privatisation and ■ Acquisition and restructuring ■ Bond issue owned by the Rothschild family ■ Creation of state restructuring by by the RPG Group ■ PSE/LSE/WSE listings champion Karbon Invest ■ Creation of NWR Board of Directors Mike Salamon Executive Chairman Shareholder Executive Non-Executive Non-Executive Representatives Directors Non-Independent Directors Independent Directors Zdenek Bakala Klaus-Dieter Beck, CEO OKD Hans-Jürgen Mende Paul Everard Peter Kadas Marek Jelínek, CFO Pavel Telička Bessel Kok Kostyantin Zhevago Barry Rourke Hans-Jörg Rudloff 4 LTIFR = number of reportable injuries after three days of absence divided by total hours worked expressed in millions of hours. Steven Schuit For further information please contact: www.newworldresources.eu Corporate office: New World Resources N.V., Jachthavenweg 109h, 1081 KM Amsterdam, The Netherlands Tel: +31 20 570 2200, Fax: +31 20 570 2222, E-mail: [email protected] Investor Relations: Tel: +31 20 570 2270, E-mail: [email protected] Media Relations: Petra Mašínová, Head of Corporate Communications, Tel: +31 65 476 4119, E-mail: [email protected].

Load more